DMAC Bear Put Spread Strategy
DMAC (DiaMedica Therapeutics Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
DiaMedica Therapeutics Inc., a clinical stage biopharmaceutical company, develops treatments for neurological and kidney diseases. The company's lead drug candidate is DM199, a recombinant human tissue kallikrein-1 protein, which is in Phase 2 REDUX trial for the treatment of patients with moderate or severe chronic kidney disease caused by Type I or Type II diabetes; and Phase 2/3 REMEDY2 trials for the treatment of patients with acute ischemic stroke. It is also developing DM300 that is in pre-clinical stage for the treatment of inflammatory diseases. The company was formerly known as DiaMedica Inc. and changed its name to DiaMedica Therapeutics Inc. in December 2016. DiaMedica Therapeutics Inc. was incorporated in 2000 and is headquartered in Minneapolis, Minnesota.
DMAC (DiaMedica Therapeutics Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $337.3M, a beta of 0.99 versus the broader market, a 52-week range of 3.475-10.4195, average daily share volume of 198K, a public-listing history dating back to 2012, approximately 27 full-time employees. These structural characteristics shape how DMAC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.99 places DMAC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a bear put spread on DMAC?
A bear put spread buys an at-the-money put and sells an out-of-the-money put at a lower strike for defined risk and defined reward bounded by the strike width.
Current DMAC snapshot
As of May 15, 2026, spot at $6.05, ATM IV 109.00%, IV rank 23.19%, expected move 31.25%. The bear put spread on DMAC below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 34-day expiry.
Why this bear put spread structure on DMAC specifically: DMAC IV at 109.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a DMAC bear put spread, with a market-implied 1-standard-deviation move of approximately 31.25% (roughly $1.89 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated DMAC expiries trade a higher absolute premium for lower per-day decay. Position sizing on DMAC should anchor to the underlying notional of $6.05 per share and to the trader's directional view on DMAC stock.
DMAC bear put spread setup
The DMAC bear put spread below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With DMAC near $6.05, the first option leg uses a $6.05 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DMAC chain at a 34-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 DMAC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $6.05 | N/A |
| Sell 1 | Put | $5.75 | N/A |
DMAC bear put spread risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
Max profit equals strike width minus net debit times 100; max loss equals net debit times 100. Breakeven is long-put strike minus net debit.
DMAC bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on DMAC. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
When traders use bear put spread on DMAC
Bear put spreads on DMAC reduce the cost of a bearish DMAC stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
DMAC thesis for this bear put spread
The market-implied 1-standard-deviation range for DMAC extends from approximately $4.16 on the downside to $7.94 on the upside. A DMAC bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on DMAC, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current DMAC IV rank near 23.19% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on DMAC at 109.00%. As a Healthcare name, DMAC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DMAC-specific events.
DMAC bear put spread positions are structurally moderately bearish; the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. DMAC positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DMAC alongside the broader basket even when DMAC-specific fundamentals are unchanged. Long-premium structures like a bear put spread on DMAC are particularly exposed to IV-crush risk through scheduled events (earnings, FDA decisions, central-bank meetings) where IV typically contracts post-event regardless of the directional outcome. Always rebuild the position from current DMAC chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on DMAC?
- A bear put spread on DMAC is the bear put spread strategy applied to DMAC (stock). The strategy is structurally moderately bearish: A bear put spread buys an at-the-money put and sells an out-of-the-money put at a lower strike for defined risk and defined reward bounded by the strike width. With DMAC stock trading near $6.05, the strikes shown on this page are snapped to the nearest listed DMAC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are DMAC bear put spread max profit and max loss calculated?
- Max profit equals strike width minus net debit times 100; max loss equals net debit times 100. Breakeven is long-put strike minus net debit. For the DMAC bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 109.00%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a DMAC bear put spread?
- The breakeven for the DMAC bear put spread priced on this page is no defined breakeven on the modeled curve at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current DMAC market-implied 1-standard-deviation expected move is approximately 31.25%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a bear put spread on DMAC?
- Bear put spreads on DMAC reduce the cost of a bearish DMAC stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
- How does current DMAC implied volatility affect this bear put spread?
- DMAC ATM IV is at 109.00% with IV rank near 23.19%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.